Lahore: Altern Energy Limited (AEL) has faced significant financial difficulties in the fiscal year ending June 30, 2024, due to reduced power demand and escalating fuel costs. According to information available from the Pakistan Stock Exchange (PSX), the company has encountered a sharp decline in dispatch demand for its electricity, largely due to the transition from indigenous gas to more expensive imported Regasified Liquefied Natural Gas (RLNG).

Amidst the economic turmoil marked by a fluctuating current account deficit and inflationary pressures, the Pakistani Rupee weakened, further exacerbating the cost of RLNG. This resulted in lower capacity revenue from the National Power Control Centre (NPCC) to Altern's plant, as outlined in the company’s annual report. The company's plant has not only faced reduced dispatches but also struggles with the availability of RLNG due to constraints at the terminal and allocation issues affecting other, more favorably positioned plants.

Despite these operational challenges, Altern Energy has continued to meet its national, legal, and contractual obligations. The company’s financial statements for 2024 report an unconsolidated net profit of PKR 4,336.31 million, which includes substantial dividend income from Power Management Company Limited (PMCL), amounting to PKR 4,390.18 million. This marks a significant turnaround from the net loss of PKR 72.86 million reported in the previous year. The earnings per share also improved dramatically to PKR 11.95 from a loss of PKR 0.20 per share in 2023.

On the operational front, the power plant did not generate electricity for the majority of the year due to unavailability of RLNG and pending license renewal approvals from NEPRA, which were only granted in April 2024. The plant, therefore, remained in preservation mode to maintain its equipment in good working order.

Altern Energy has paid out dividends totalling 115% over the financial year, reflecting its commitment to shareholder returns despite the operational difficulties. These dividends were distributed as four interim payments, bolstered by the robust dividend inflow from its subsidiary PMCL.

Looking forward, the company is focusing on navigating the challenging economic and operational landscape while continuing to invest in maintenance and governance to safeguard future operations and profitability.